A domestic company purchased its own unlisted shares on 20th August 2018 for a total consideration of INR-30,00,000 which was paid on the same day. The company has issued the same share 2 years ago for ₹15,00,000. Comput

Net amount paid by the company on buy-back = ₹30,00,000 - ₹15,00,000 = ₹15,00,000 Tax Payable on the buy-back u/s 115QA of the Income Tax Act, 1961 @ 20% + Surcharge @ 12% + Cess @ 4% along with interest @1% if the tax is not deposited within 14 days from the date of payment of buy-back consideration. Total tax payable [₹15,00,000*20% + Surcharge @ 12% + Cess @4%] = ₹3,49,440. Since, there is delay in payment of tax for a period of 6 month, interest will be chargeable u/s 115QB of the Income Tax Act, 1961 @ 1% for 6 month i.e. ₹20,966 [6% of ₹3,49,440]. Therefore Total amount payable by the company ₹3,70,406 [i.e. ₹3,49,440 + 20,966]